Ministry Seeks Appointment of Former SNGPL MD Amid Controversy

The Energy Ministry (Petroleum Division) has reportedly sent a proposal to the prime minister suggesting the nomination of Muhammad Arif Hameed, a former managing director, to the Board of Directors of Sui Northern Gas Pipelines Limited (SNGPL), according to sources.

Hameed was a permanent employee at SNGPL until September 24, 2011, where he held the position of senior general manager. Subsequently, he was appointed as managing director of SNGPL and remained in that capacity, receiving multiple extensions, until September 2015.

On September 2, 2015, the then-Ministry of Petroleum and Natural Resources submitted a request to the prime minister for Hameed’s dismissal. The prime minister gave the nod, and Hameed was formally removed from his position on September 5, 2015.

During his tenure as MD, the company experienced an unprecedented surge in Unaccounted for Gas (UFG), representing gas losses within the pipeline infrastructure. These losses greatly surpassed the limits established by the Oil and Gas Regulatory Authority (OGRA). The rise in UFG directly led to financial setbacks for the company, thereby reflecting poorly on Hameed’s administrative oversight.

Despite consistent warnings and supervision from OGRA, there was no effective plan to address this escalating issue, which continues to affect SNGPL’s financial stability.

Another significant concern was Hameed’s alleged opposition to the government’s expedited LNG-based energy initiatives. Amidst a nationwide energy shortage, Hameed faced accusations of intentionally impeding advancements, disregarding explicit directives from the then-petroleum minister and the ministry itself.

Hameed contested his removal before the Lahore High Court (LHC) via writ petition No 26232/2015; however, he later withdrew the case following his resignation.

Following his departure, Hameed entered the petroleum sector, launching a filling station in Gulberg, Lahore, under the name U&S Gulberg Filling Station.

In both January and February 2021, the filling station was determined to be engaging in short-measuring customers, a violation verified by OGRA in its order dated January 29, 2025.

Allegedly, Hameed was also implicated in the irregular appointment and promotion of an SNGPL secretary.

An inquiry conducted on DP No 76 MFDAC 2017-18 revealed that the secretary had obtained numerous unwarranted promotions and pay raises, totaling Rs 6.292 million, which contravened company regulations. The inquiry indicated a lack of valid justification for circumventing established appointment protocols, and it held Arif Hameed, along with then-Senior GM HR Liaquat Raza, and HRC Chairman Mirza Mahmood Ahmad accountable for abusing their authority to favor the secretary.

The Energy Ministry has now put forward Hameed’s name in a summary submitted to the prime minister concerning the appointment of new directors to the SNGPL Board. Also nominated is Muhammad Ahmad Qayyum, purportedly a close associate of the current petroleum minister.

Questions were directed to the Ministry of Energy (Petroleum Division) spokesperson, but no response was provided before the deadline.